New Application to be Approved Liquidators or Public Accountants for the purpose of becoming Judicial Managers following commencement of IRDA
The Insolvency, Restructuring and Dissolution Act (IRDA) came into effect on 30 Jul 2020.
Under the IRDA, individuals who wish to act as a liquidator, judicial manager (JM) or Trustee in Bankruptcy (TIB) are required to be registered as Insolvency Practitioners with the Ministry of Law for the purpose of undertaking new winding up, JM or TIB cases that are commenced on / after the IRDA comes into effect. Accordingly, ACRA will no longer be accepting new applications to be approved liquidators or Public Accountants for the purpose of becoming Judicial Managers. More information on the new regime for insolvency practitioners can be found at https://lripd.mlaw.gov.sg
Approved Liquidators under section 9(1) of the Companies Act
With effect from 30 Jul 2020, all approved liquidators are declared by the Minister by way of an order under section 9(1) of the Companies Act to be a specific class of persons.
Persons in this class of approved liquidators can be appointed as:
- liquidators of any winding up cases commenced under the Companies Act or LLP Act and outstanding at the time the IRDA comes into effect (pre-IRDA cases), including as replacement liquidators of such cases when the appointed liquidators resign or cease to be approved liquidators; and
- liquidators of winding up cases in relation to Variable Capital Companies and its sub funds (VCC) during the interim period until the VCC Act has been updated to allow Insolvency Practitioners to undertake such work.
These approved liquidators need not renew their existing approved liquidator licence upon its expiry. The approved liquidator licence will remain valid unless it is cancelled voluntarily or revoked by ACRA on grounds such as bankruptcy etc.
Approved Liquidator who is also registered as a Public Accountant
If the approved liquidator is also registered as a public accountant, he will need to comply with the Continuing Professional Education requirements of acquiring at least 9 structured hours in Category 4: Insolvency and Restructuring over a rolling 3-year period for the renewal of his registration as a public accountant. For more information on the Continuing Professional Education requirements for the renewal of registration as a public accountant, please refer to Requirements for Renewal of Public Accountant Registration
Withdrawal from being an Approved Liquidator
Approved liquidators who do not wish to practise as liquidators may request to revoke their approved liquidator licence by submitting an “Withdrawal from Being an Approved Liquidator” transaction in BizFile+
- Companies (Revocation of Appointment of Approved Liquidators) Order 2022